To The Moon

Alibaba $BABA-W(09988)$ – AI-Driven Rally

Alibaba surged nearly 19% on August 29 following its Q2 FY25 earnings report, primarily driven by:

• Cloud segment outperforming expectations with 26% revenue growth, significantly above estimates.

• AI-related product revenue continuing triple-digit growth for the eighth straight quarter.

• Development of a domestic AI inference chip, strengthening investors’ confidence in Alibaba’s strategic positioning amid global tech tensions.

Chart-Based Technical Analysis:

• Trend Channel: Alibaba’s price recently bounced off after earnings at the top of a rising channel (around ~140 HKD), suggesting it faces short-term resistance.

• Support Zone: A key support area is seen around 122–125 HKD, where buyers may step in on pullbacks.

• The recent down move from the channel top suggests a return toward the support zone, offering potential short-term trade setups.

Trading with DLCs (Derivative Leveraged Contracts)

For Bullish Expectations (Support Bounce):

• If Alibaba approaches 122–125 HKD and shows signs of holding support, long DLCs $Alibaba 3xLongSG271125(RUMW.SI)$ can offer leveraged exposure to a rally with defined risk.

For Bearish or Protective Strategies:

• Given the weaker reaction from the channel top, or a potential break below support, short DLCs $Alibaba 3xShortSG271125(XOZW.SI)$ offer a tactical hedging option or a way to capitalize on downside.

Why DLCs Are Useful:

• Provide leverage with limited capital.

• The maximum loss is limited to the premium paid—there’s no margin call risk.

• Ideal for short-term tactical plays around high-probability technical levels.

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For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook 

Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.